Ningde Times No.1 City With 10 Billion Strategic Investment: 2.5 Billion Full Subscription Pilot Intelligent Fixed Increase Industrial Chain Layout Accelerates

Ningde era's first project of 10 billion investment, "flower fall" pilot intelligence.

On the evening of September 14, pioneer intelligence announced that it planned to raise no more than 2.5 billion yuan through fixed increase, and Ningde times would subscribe for all fixed increase shares. After the completion of the fixed increase, Ningde times will hold 7.29% of the equity of pioneer intelligence and become the second largest shareholder of the listed company.

Previously, on August 11, Ningde Times announced that it planned to invest in high-quality listed enterprises in the upstream and downstream of the domestic and foreign industrial chain by means of securities investment focusing on the main business, with the total investment not exceeding 19.067 billion yuan, including the total amount of overseas investment not exceeding 2.5 billion US dollars. This time, the first target of Ningde era is lithium battery equipment manufacturers.

Leader intelligence is the upstream manufacturer of Ningde era, mainly providing lithium battery production equipment. After Ningde era becomes a strategic investor of leading intelligence, it will undoubtedly promote the business cooperation between the two sides.

It is generally believed in the industry that this investment will help Ningde era to strengthen its large-scale manufacturing capacity, and it is also conducive to the consolidation of deep binding relationship between leading intelligence and downstream big customers, and the global competitiveness of domestic electric industry chain is expected to be further improved.

And this investment in leading intelligence is the signal of Ningde times to strengthen the investment in the industrial chain, and the new energy automobile ecosystem it is trying to create is gradually improving.

Take the lead in intelligent fixed increase

For the leader intelligence itself, the most direct thing is to meet the actual needs of its production and development.

Through this fixed increase, leader intelligence is expected to solve the problem of limited production site of Titan new power, its main subsidiary of lithium battery plate, and solve the defects of outdated facilities, Limited automation level and poor production coordination of the company's headquarters production base, which will help the company to expand production capacity and continuously meet the growing market demand.

Since its investment of 10 billion yuan, Ningde has been expecting to invest for the first time. The choice of leader intelligence is not surprising to the outside world. Previously, the cooperation between the two has been very close.

According to the public information, leader intelligence specializes in the R & D, design, production and sales of high-end automation complete sets of equipment, and provides high-end fully automatic intelligent equipment and overall solutions for manufacturers of energy-saving and environmental protection and new energy products such as lithium batteries, photovoltaic cells / modules, 3C, thin-film capacitors, etc.

In recent years, leader intelligence has successively obtained many large orders from Ningde era. According to the public release materials of Ningde times in 2018, from 2015 to 2017, pioneer intelligence was among the top five suppliers of Ningde era. In 2017, Ningde times purchased 593 million yuan from leader intelligence, while the total revenue of pioneer intelligence in that year was 2.18 billion yuan. In other words, orders from Ningde era account for nearly 30% of the total revenue of the leader.

Zheng Dandan, chief researcher of Dongxing securities and power new industry, estimated to the reporter that the amount of lithium battery production equipment purchased by Ningde era and its subsidiaries from leader intelligence accounted for 50.7%, 47.5% and 36.7% of the current lithium battery equipment revenue of leader intelligence in 2018, 2019 and the first half of 2020, respectively. Ningde era has become the largest customer of leader intelligence.

Under the premise of such cooperation, Ningde will become the second largest shareholder, which will expand the business increment of the latter directly.

Leader intelligence said that in the future, with the implementation of Ningde era's capacity investment plan, the demand for lithium battery equipment in Ningde will continue to be released. After it becomes a strategic investor, it will help pilot intelligence expand its sales scale and provide strong guarantee for Ningde's expansion plan.

From the market response point of view, Ningde era's strategic equity investment attracted funds. On September 15, pioneer intelligence rose more than 11% to close at 48.09 yuan / share. Ningde times also rose slightly by 1% to close at 194.70 yuan / share.

Although the response of the market to the Ningde era is not as good as that of the leader intelligence, in fact, this share-holding is also of great significance in Ningde era.

"The investment target of Ningde era this time is the equipment manufacturer. In the production process of power battery, some key equipment and technology need to be controlled. After investment, we will be more confident about expanding production capacity. Ningde times can control the equipment R & D and production progress according to its own production capacity, so as to make the order delivery more stable and the cost control better. " Zhang Xiang, an independent auto industry analyst, told reporters of the 21st century economic report.

"In the future, if Ningde era successfully intervenes in the operation and management of leading intelligence through equity investment, it will help to enhance the supervision effect and delivery schedule of lithium battery equipment ordered by it, so as to ensure the smooth implementation of the expansion plan." Zheng Dandan told reporters.

Future direction of industrial chain investment

Ningde era's investment led by intelligence was the first move to announce an investment of 19 billion yuan in August. Due to its large scale, it once attracted wide attention in the industry. But if you look at the long term, this is just a corner of the investment map of Ningde era industrial chain.

According to the relevant statistics of qixinbao, there are 48 holding companies of Ningde times investment, and there are 11 enterprises with 100% shareholding ratio, most of which are new energy and material related enterprises.

From the perspective of industrial chain layout, for example, in the production of power battery materials, Ningde times and German nano set up a joint venture to invest in the construction of 10000 t / a lithium iron phosphate cathode project; its holding company Guangdong Bangpu arranged the waste battery recycling business, producing ternary precursors and ternary materials; in terms of negative electrode, its wholly-owned subsidiary Pingnan times 430 T / a silicon-based anode project has been put into operation.

In the downstream, it establishes cooperative relationship with automobile enterprises. Ningde era is the supporting power battery products for SAIC, Geely, Yutong, BAIC, GAC, Changan, Dongfeng, Weilai, Weima, Xiaopeng, etc. In 2017, Ningde times also established two new energy enterprises jointly with SAIC Group; in 2018, it established Dongfeng era (Wuhan) battery system Co., Ltd. with Dongfeng Electric vehicle, and Pengcheng new energy, a battery pack assembly enterprise, with Hangzhou fork group, a forklift leader.

In July this year, Ningde times established a subsidiary company for investment, Ningde Times New Energy Industry Investment Co., Ltd., which is wholly owned by Ningde times, with a registered capital of 50 million yuan, which is mainly used for investment activities with its own funds.

The vision of Ningde era is more than domestic, which can be seen from the layout of its investment quota of US $2.5 billion abroad.

At present, the global R & D and overseas production bases of Ningde have been improved since 2014. In 2017, Ningde invested 30 million euro to participate in 22% equity of vermeert automobile in Finland. Ningde also set up a production base in tulingen, mainly engaged in the research and development and production of lithium-ion batteries, which is planned to be put into production in 2021. BMW, Volkswagen, Daimler, Citroen, Volvo and Jaguar Land Rover have become their customers.

"From the perspective of foreign investment companies, Ningde era mainly focuses on battery packs and energy storage, and also cooperates with automobile enterprises, including the establishment of joint ventures. Materials and production equipment are still relatively small, and investment in upstream and downstream is to consolidate the foundation of the industrial chain. " "Through the layout of the whole industry chain, improving the company's ability to resist risks, and then increasing the company's valuation, is also good for financing, forming a virtuous circle," Zhang said

As for the next investment direction of Ningde era, starting from the above logic, the industry generally believes that most equipment and material suppliers will invest in their own industrial chain to ensure the supply of key resources.

Soochow securities research paper points out that the equipment link will exist independently for a long time. Due to the acceleration of technological change and obvious first mover advantage of equipment manufacturers, leading domestic equipment manufacturers have global competitiveness. Ningde urgently needs to lock in its future production capacity. It can be predicted that the supply of equipment will be in short supply in the next five years.